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Security Best Practices

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Token Approval Safety

Approve only the exact amount needed for your orders rather than unlimited amounts. For TWAP orders specifically, approve precisely n * partSellAmount.

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Safe Configuration Requirements

Proper setup demands three critical steps:
  1. Configure the fallback handler to the ExtensibleFallbackHandler address
  2. Set the domain verifier for GPv2Settlement
  3. Test with a small order before full deployment
Incorrect fallback handler configuration will cause all orders to fail signature verification.

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Order Parameter Validation

Ensure:
  • Official handler addresses are used (not custom or unverified ones)
  • Each order has a unique salt value to prevent hash collisions
  • TWAP parameters meet specific constraints (e.g., n > 1, span must not exceed t)

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Merkle Tree and Proof Management

Secure storage of merkle proofs is essential.
Loss of proofs means you cannot execute orders, even though they’re valid on-chain.
Redundant backup systems are recommended for proof storage.

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Monitoring and Emergency Response

Post-creation oversight involves:
  1. Track execution on CoW Explorer
  2. Verify watchtower pickup of your orders
  3. If issues arise:
    • Cancel problematic orders immediately
    • Revoke token approvals if security concerns exist
Last modified on March 4, 2026